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Next-Generation MVNOs: Where the Real Opportunities Lie

Cambridge, MA, December 2, 2004 - Market acceptance of the mobile virtual network operator (MVNO) is at an all time high, but according to Pyramid Research’s new report “Next-Generation MVNOs,” market conditions for many aspiring mass-market MVNOs will get worse, not better.  As mobile subscriber bases across developed regions reach saturation levels and price pressure on core voice and SMS services mounts, service revenue for many MVNOs will undoubtedly get squeezed.  Unless many of the predominantly prepaid, consumer-oriented and voice-centric brands do not offset the declines with new value-added services, they will face a difficult road ahead.

Report author Nicholas McQuire states, “The MVNO market is moving to its next stage of evolution.  The new MVNO will be more sophisticated and differ from the many consumer-oriented, voice-centric and operationally ‘light’ MVNOs of today.”  Next-generation MVNOs will come to market leveraging future technology drivers such as the proliferation of mobile broadband, IP-based multimedia data services and converging machine-to-machine (M2M) and biometric applications.  They will capitalize on important mobile trends such as the growth of mobile wholesale, the need for greater customer segmentation in service offerings and the maturity of third-party MVNO enablers.

“Next-Generation MVNOs” asserts that in addition to a rise of smarter, technically-savvy, and segmented consumer MVNOs, the market will see a sharp increase of MVNO activity in vertical mobile markets like telematics and supply chain logistics, the enterprise and mobile healthcare.  McQuire states, “vertical market MVNOs will exhibit higher ARPUs and be received with greater acceptance from their wholesale partner as they promise to increase market penetration and reduce spare capacity of high-end mobile data networks without cannibalizing existing subscribers.”

About “Next-Generation MVNOs”
This report assesses the next wave of MVNOs utilizing new technologies to segment the consumer market and enter highly profitable vertical markets. The report also examines the value added benefits of these MVNOs to the MNO.  Write sales@pyr.comto request a report excerpt.

About Pyramid Research
Pyramid Research provides in-depth coverage and analysis of Fixed and Mobile Communications, Internet, Media, Wi-Fi and WiMax, and mobile CAPEX markets of 95 countries.

Combining an international perspective with local market insight and cutting-edge analysis, Pyramid Research gives clients a solid foundation for developing their global business plans.  Market coverage includes Central and Eastern Europe, Western Europe, Africa & the Middle East, Asia-Pacific, Latin America and North America.

Press Contact:
Jared Jost
Pyramid Research

jjost@pyr.com
(617)494-1515

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